Legg Mason (Legg Mason) PB Ratio : 1.17 (As of Apr. 26, 2024)

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What is Legg Mason PB Ratio?

The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. As of today (2024-04-26), Legg Mason's share price is $49.99. Legg Mason's Book Value per Share for the quarter that ended in Jun. 2020 was $42.71. Hence, Legg Mason's PB Ratio of today is 1.17.

Good Sign:

Legg Mason Inc stock PB Ratio (=1.11) is close to 1-year low of 1.11

The historical rank and industry rank for Legg Mason's PB Ratio or its related term are showing as below:

LM' s PB Ratio Range Over the Past 10 Years
Min: 0.56 Med: 0.86 Max: 1.59
Current: 1.11

During the past 13 years, Legg Mason's highest PB Ratio was 1.59. The lowest was 0.56. And the median was 0.86.

LM's PB Ratio is not ranked
in the Asset Management industry.
Industry Median: 0.93 vs LM: 1.11

During the past 12 months, Legg Mason's average Book Value Per Share Growth Rate was 0.30% per year. During the past 3 years, the average Book Value Per Share Growth Rate was 0.20% per year. During the past 5 years, the average Book Value Per Share Growth Rate was 1.10% per year. During the past 10 years, the average Book Value Per Share Growth Rate was 4.20% per year.

During the past 13 years, the highest 3-Year average Book Value Per Share Growth Rate of Legg Mason was 46.60% per year. The lowest was -12.80% per year. And the median was 9.15% per year.

Back to Basics: PB Ratio

Legg Mason PB Ratio Historical Data

The historical data trend for Legg Mason's PB Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Legg Mason PB Ratio Chart

Legg Mason Annual Data

Trend

Mar11

Mar12

Mar13

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

PB Ratio

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0.88

0.87

0.90

0.64

1.13

Legg Mason Quarterly Data
	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20
PB Ratio	Get a 7-Day Free Trial															0.90	0.89	0.82	1.13	1.16

Competitive Comparison of Legg Mason's PB Ratio

For the Asset Management subindustry, Legg Mason's PB Ratio, along with its competitors' market caps and PB Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Legg Mason's PB Ratio Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Legg Mason's PB Ratio distribution charts can be found below:

* The bar in red indicates where Legg Mason's PB Ratio falls into.

Legg Mason PB Ratio Calculation

The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. It is a ratio widely used to value stocks.

Legg Mason's PB Ratio for today is calculated as follows:

PB Ratio	=	Share Price	/	Book Value per Share (Q: Jun. 2020)
	=	49.99	/	42.706
	=	1.17

It can also be calculated from the numbers for the whole company:

PB Ratio

Market Cap

(Total Stockholders Equity

Preferred Stock)

A closely related ratio is called Price-to-Tangible-Book. The difference between Price-to-Tangible-Book and PB Ratio is that book value other than intangibles are used in the calculation.

Legg Mason (NYSE:LM) PB Ratio Explanation

Unlike valuation ratios relative to the earning power such as PE Ratio, PE Ratio without NRI, PS Ratio, Price-to-Operating-Cash-Flow , or Price-to-Free-Cash-Flow, the PB Ratio measures the valuation of the stock relative to the underlying asset of the company.

The PB Ratio works the best for the businesses that earn most of their profit from their assets, e.g. banks and insurance companies.

Be Aware

Some businesses have very light assets, such as software companies or insurance agencies. The PB Ratio does not work well for these companies. Some companies even have negative equity, so the PB Ratio cannot be applied to them.

Legg Mason PB Ratio Related Terms

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Legg Mason (Legg Mason) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Legg Mason Inc (NYSE:LM) » Definitions » PB Ratio

Comparable Companies

Traded in Other Exchanges

N/A

Address

100 International Drive, Baltimore, MD, USA, 21202-1099

Website

https://www.leggmason.com

Legg Mason provides investment management services for institutional and individual investors. The firm had $783.4 billion in managed assets at the end of June, spread among its equity (25% of total AUM), fixed-income (57%), alternatives (9%), and money market (9%) investment platforms. Legg Mason uses a multiaffiliate business model, with its single- largest affiliate, Western Asset Management, accounting for more than 60% of managed assets. Other major affiliates include ClearBridge Investments (more than 15% of AUM), Brandywine (less than 10%), and Clarion Partners (less than 10%). The remaining affiliates--Martin Currie, Royce & Associates, EnTrustPermal, QS Investors, and RARE Infrastructure--each account for 2% or less of Legg Mason's managed assets.